{"id":1072,"date":"2026-09-05T00:37:21","date_gmt":"2026-09-05T04:37:21","guid":{"rendered":"https:\/\/arvcalc.com\/blog\/tennessee-closing-costs-investment-property\/"},"modified":"2026-09-05T01:28:31","modified_gmt":"2026-09-05T05:28:31","slug":"tennessee-closing-costs-investment-property","status":"publish","type":"post","link":"https:\/\/arvcalc.com\/blog\/tennessee-closing-costs-investment-property\/","title":{"rendered":"Tennessee Closing Costs for Investment Property: Full Breakdown (2026)"},"content":{"rendered":"<p>Tennessee closing costs for investment property average 2\u20134% of the purchase price \u2014 moderate nationally, but with one unique factor: the state charges a <strong>transfer tax of $0.37 per $100<\/strong> of sale price. On a $200K property, that is $740 \u2014 less than Florida ($1,400) or Pennsylvania ($4,000), but more than Indiana ($0) or Texas ($0). Combined with Tennessee&#8217;s title-company closings (no attorney required), zero state income tax, and 0.56% property tax, total cash at closing is among the most predictable in the US. Here is the full breakdown by line item with worked examples for Memphis and Nashville.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"900\" height=\"506\" src=\"https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/09\/tennessee-closing-costs-investment-guide.jpg\" alt=\"Tennessee closing costs guide 2026 \u2014 transfer tax 0.37 per 100 Memphis Nashville cash to close\" class=\"wp-image-1073\" srcset=\"https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/09\/tennessee-closing-costs-investment-guide.jpg 1672w, https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/09\/tennessee-closing-costs-investment-guide-300x169.jpg 300w, https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/09\/tennessee-closing-costs-investment-guide-1024x576.jpg 1024w, https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/09\/tennessee-closing-costs-investment-guide-768x432.jpg 768w, https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/09\/tennessee-closing-costs-investment-guide-1536x864.jpg 1536w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><\/figure>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_83 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/arvcalc.com\/blog\/tennessee-closing-costs-investment-property\/#Tennessee_Closing_Costs_What_Makes_Them_Different\" >Tennessee Closing Costs: What Makes Them Different<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/arvcalc.com\/blog\/tennessee-closing-costs-investment-property\/#Full_Breakdown_Tennessee_Buyer_Closing_Costs\" >Full Breakdown: Tennessee Buyer Closing Costs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/arvcalc.com\/blog\/tennessee-closing-costs-investment-property\/#Worked_Example_Memphis_SFR_at_155000\" >Worked Example: Memphis SFR at $155,000<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/arvcalc.com\/blog\/tennessee-closing-costs-investment-property\/#Worked_Example_Nashville_SFR_at_380000\" >Worked Example: Nashville SFR at $380,000<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/arvcalc.com\/blog\/tennessee-closing-costs-investment-property\/#Tennessee_Closing_Costs_by_County\" >Tennessee Closing Costs by County<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/arvcalc.com\/blog\/tennessee-closing-costs-investment-property\/#Seller_Closing_Costs_in_Tennessee\" >Seller Closing Costs in Tennessee<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/arvcalc.com\/blog\/tennessee-closing-costs-investment-property\/#How_to_Reduce_Tennessee_Closing_Costs\" >How to Reduce Tennessee Closing Costs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/arvcalc.com\/blog\/tennessee-closing-costs-investment-property\/#1_Negotiate_Transfer_Tax\" >1. Negotiate Transfer Tax<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/arvcalc.com\/blog\/tennessee-closing-costs-investment-property\/#2_Ask_for_Seller_Credits\" >2. Ask for Seller Credits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/arvcalc.com\/blog\/tennessee-closing-costs-investment-property\/#3_Close_Late_in_the_Month\" >3. Close Late in the Month<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/arvcalc.com\/blog\/tennessee-closing-costs-investment-property\/#4_Shop_Lender_Fees\" >4. Shop Lender Fees<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/arvcalc.com\/blog\/tennessee-closing-costs-investment-property\/#5_Tennessee_Closing_Cost_Mistakes\" >5 Tennessee Closing Cost Mistakes<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/arvcalc.com\/blog\/tennessee-closing-costs-investment-property\/#1_Forgetting_the_Transfer_Tax\" >1. Forgetting the Transfer Tax<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/arvcalc.com\/blog\/tennessee-closing-costs-investment-property\/#2_Assuming_Owners_Title_Is_Your_Cost\" >2. Assuming Owner&#8217;s Title Is Your Cost<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/arvcalc.com\/blog\/tennessee-closing-costs-investment-property\/#3_Ignoring_Memphis_Flood_Insurance\" >3. Ignoring Memphis Flood Insurance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/arvcalc.com\/blog\/tennessee-closing-costs-investment-property\/#4_Using_Nashville_Closing_Costs_for_Memphis_Deals\" >4. Using Nashville Closing Costs for Memphis Deals<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/arvcalc.com\/blog\/tennessee-closing-costs-investment-property\/#5_Not_Comparing_Title_Companies\" >5. Not Comparing Title Companies<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/arvcalc.com\/blog\/tennessee-closing-costs-investment-property\/#Frequently_Asked_Questions\" >Frequently Asked Questions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/arvcalc.com\/blog\/tennessee-closing-costs-investment-property\/#Does_Tennessee_have_a_transfer_tax\" >Does Tennessee have a transfer tax?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/arvcalc.com\/blog\/tennessee-closing-costs-investment-property\/#How_much_are_closing_costs_in_Tennessee\" >How much are closing costs in Tennessee?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/arvcalc.com\/blog\/tennessee-closing-costs-investment-property\/#Do_I_need_an_attorney_to_close_in_Tennessee\" >Do I need an attorney to close in Tennessee?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/arvcalc.com\/blog\/tennessee-closing-costs-investment-property\/#Who_pays_title_insurance_in_Tennessee\" >Who pays title insurance in Tennessee?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/arvcalc.com\/blog\/tennessee-closing-costs-investment-property\/#Are_Tennessee_closing_costs_higher_than_Indiana\" >Are Tennessee closing costs higher than Indiana?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/arvcalc.com\/blog\/tennessee-closing-costs-investment-property\/#Related_Calculators_and_Guides\" >Related Calculators and Guides<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Tennessee_Closing_Costs_What_Makes_Them_Different\"><\/span>Tennessee Closing Costs: What Makes Them Different<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Three factors define Tennessee closing costs:<\/p>\n<ul>\n<li><strong>Transfer tax ($0.37\/$100)<\/strong> \u2014 Tennessee charges a state transfer tax on all real estate transfers. On a $155K Memphis SFR: $574. On a $380K Nashville property: $1,406. This is paid by the buyer in most Tennessee transactions, though it is negotiable. Per <a href=\"https:\/\/www.tn.gov\/revenue\/taxes\/recording-tax.html\" target=\"_blank\" rel=\"noopener noreferrer\">Tennessee Department of Revenue<\/a>, the tax applies to the full consideration (sale price).<\/li>\n<li><strong>Title company closings<\/strong> \u2014 Tennessee is a title-company state, not an attorney state. This saves $500\u2013$1,500 compared to states requiring attorney presence (New York, New Jersey, Georgia). Closings are handled by title companies or escrow agents.<\/li>\n<li><strong>No state income tax impact<\/strong> \u2014 Tennessee charges zero state income tax, so there is no withholding or estimated tax payment at closing for out-of-state buyers (unlike California or Oregon which may require withholding).<\/li>\n<\/ul>\n<p>Calculate your exact costs in the <a href=\"\/states\/tennessee\/closing-costs-calculator\">Tennessee closing costs calculator<\/a>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Full_Breakdown_Tennessee_Buyer_Closing_Costs\"><\/span>Full Breakdown: Tennessee Buyer Closing Costs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th>Cost Item<\/th>\n<th>Typical Range<\/th>\n<th>Notes<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><strong>Transfer Tax (state)<\/strong><\/td>\n<td>$0.37 per $100<\/td>\n<td>Based on sale price. Buyer pays (negotiable)<\/td>\n<\/tr>\n<tr>\n<td><strong>Loan Origination Fee<\/strong><\/td>\n<td>0.5\u20131.0% of loan<\/td>\n<td>Lender fee. Some charge flat fee<\/td>\n<\/tr>\n<tr>\n<td><strong>Appraisal<\/strong><\/td>\n<td>$450\u2013$650<\/td>\n<td>Required by lender<\/td>\n<\/tr>\n<tr>\n<td><strong>Home Inspection<\/strong><\/td>\n<td>$350\u2013$550<\/td>\n<td>Optional but recommended<\/td>\n<\/tr>\n<tr>\n<td><strong>Lender Title Policy<\/strong><\/td>\n<td>$300\u2013$500<\/td>\n<td>Required by lender. Buyer pays<\/td>\n<\/tr>\n<tr>\n<td><strong>Owner&#8217;s Title Policy<\/strong><\/td>\n<td>$400\u2013$800<\/td>\n<td>Seller typically pays (TN convention)<\/td>\n<\/tr>\n<tr>\n<td><strong>Survey<\/strong><\/td>\n<td>$300\u2013$500<\/td>\n<td>Often required, especially rural TN<\/td>\n<\/tr>\n<tr>\n<td><strong>Recording Fees<\/strong><\/td>\n<td>$50\u2013$200<\/td>\n<td>County register of deeds<\/td>\n<\/tr>\n<tr>\n<td><strong>Credit Report<\/strong><\/td>\n<td>$30\u2013$75<\/td>\n<td>Pulled by lender<\/td>\n<\/tr>\n<tr>\n<td><strong>Escrow Reserves<\/strong><\/td>\n<td>2\u20133 months taxes + insurance<\/td>\n<td>$800\u2013$2,500 depending on property<\/td>\n<\/tr>\n<tr>\n<td><strong>Prepaid Interest<\/strong><\/td>\n<td>15\u201330 days<\/td>\n<td>Daily interest from closing to first payment<\/td>\n<\/tr>\n<tr>\n<td><strong>Flood Certification<\/strong><\/td>\n<td>$15\u2013$25<\/td>\n<td>FEMA flood zone check<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Worked_Example_Memphis_SFR_at_155000\"><\/span>Worked Example: Memphis SFR at $155,000<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<pre><code>Purchase Price:              $155,000\nDown Payment (25%):          $38,750\nLoan Amount:                 $116,250\n\nCLOSING COSTS:\n  Transfer Tax ($0.37\/$100): $574\n  Loan Origination (0.5%):   $581\n  Appraisal:                 $500\n  Home Inspection:           $400\n  Lender Title Policy:       $340\n  Survey:                    $350\n  Recording Fees:            $100\n  Credit Report:             $50\n  Flood Certification:       $20\n  Subtotal Closing Costs:    $2,915\n\nPREPAIDS & ESCROW:\n  Escrow (3 mo tax + ins):   $874\n  Prepaid Interest (15 days): $479\n  Homeowner Insurance (1yr):  $2,400\n  Subtotal Prepaids:         $3,753\n\nTOTAL CASH AT CLOSING:\n  Down Payment:              $38,750\n  Closing Costs:             $2,915\n  Prepaids & Escrow:         $3,753\n  TOTAL:                     $45,418\n\n  Closing Costs as % of Price: 1.9%\n  Total Cash Required:        29.3% of purchase price<\/code><\/pre>\n<p><strong>$45,418 total cash at closing<\/strong> on a $155K Memphis rental. Closing costs ($2,915) are only 1.9% of purchase price. The transfer tax ($574) is the biggest Tennessee-specific line item \u2014 compare to Indiana where this would be $0. But Tennessee&#8217;s 0% income tax saves far more over the hold period than $574 at closing.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Worked_Example_Nashville_SFR_at_380000\"><\/span>Worked Example: Nashville SFR at $380,000<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<pre><code>Purchase Price:              $380,000\nDown Payment (25%):          $95,000\nLoan Amount:                 $285,000\n\nCLOSING COSTS:\n  Transfer Tax ($0.37\/$100): $1,406\n  Loan Origination (0.5%):   $1,425\n  Appraisal:                 $600\n  Home Inspection:           $500\n  Lender Title Policy:       $450\n  Survey:                    $400\n  Recording Fees:            $150\n  Credit Report:             $50\n  Flood Certification:       $20\n  Subtotal Closing Costs:    $5,001\n\nPREPAIDS & ESCROW:\n  Escrow (3 mo tax + ins):   $1,044\n  Prepaid Interest (15 days): $1,175\n  Homeowner Insurance (1yr):  $2,200\n  Subtotal Prepaids:         $4,419\n\nTOTAL CASH AT CLOSING:\n  Down Payment:              $95,000\n  Closing Costs:             $5,001\n  Prepaids & Escrow:         $4,419\n  TOTAL:                     $104,420\n\n  Closing Costs as % of Price: 1.3%\n  Total Cash Required:        27.5% of purchase price<\/code><\/pre>\n<p><strong>$104,420 total for Nashville<\/strong> \u2014 $59,002 more than Memphis. The transfer tax jumps from $574 to $1,406 with the higher price. Nashville closing costs as percentage (1.3%) are actually lower than Memphis (1.9%) because fixed costs (appraisal, inspection, survey) spread over a larger purchase price.<\/p>\n<p>Compare both in the <a href=\"\/states\/tennessee\/closing-costs-calculator\">Tennessee closing costs calculator<\/a>. For full investment analysis including closing costs, use the <a href=\"\/states\/tennessee\/rental-property-calculator\">Tennessee rental property calculator<\/a>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Tennessee_Closing_Costs_by_County\"><\/span>Tennessee Closing Costs by County<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th>County (Metro)<\/th>\n<th>Recording Fee<\/th>\n<th>Property Tax Rate<\/th>\n<th>Escrow Impact (3 mo)<\/th>\n<th>Transfer Tax on $200K<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><strong>Shelby (Memphis)<\/strong><\/td>\n<td>$100<\/td>\n<td>0.71%<\/td>\n<td>$955<\/td>\n<td>$740<\/td>\n<\/tr>\n<tr>\n<td><strong>Davidson (Nashville)<\/strong><\/td>\n<td>$150<\/td>\n<td>0.52%<\/td>\n<td>$810<\/td>\n<td>$740<\/td>\n<\/tr>\n<tr>\n<td><strong>Hamilton (Chattanooga)<\/strong><\/td>\n<td>$100<\/td>\n<td>0.48%<\/td>\n<td>$740<\/td>\n<td>$740<\/td>\n<\/tr>\n<tr>\n<td><strong>Knox (Knoxville)<\/strong><\/td>\n<td>$120<\/td>\n<td>0.50%<\/td>\n<td>$775<\/td>\n<td>$740<\/td>\n<\/tr>\n<tr>\n<td><strong>Montgomery (Clarksville)<\/strong><\/td>\n<td>$80<\/td>\n<td>0.55%<\/td>\n<td>$825<\/td>\n<td>$740<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<p>Transfer tax is the same statewide ($0.37\/$100). The difference between counties is escrow reserves \u2014 Shelby County&#8217;s higher property tax (0.71%) means $215 more in escrow than Hamilton County (0.48%). Per <a href=\"https:\/\/www.tn.gov\/comptroller\/division-of-property-assessments.html\" target=\"_blank\" rel=\"noopener noreferrer\">Tennessee Comptroller<\/a>, property is assessed at 25% of appraised value for residential, then county tax rates apply.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Seller_Closing_Costs_in_Tennessee\"><\/span>Seller Closing Costs in Tennessee<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th>Cost Item<\/th>\n<th>Typical Range<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><strong>Agent Commission<\/strong><\/td>\n<td>5\u20136% of sale price ($7,750\u2013$9,300 on $155K)<\/td>\n<\/tr>\n<tr>\n<td><strong>Owner&#8217;s Title Policy<\/strong><\/td>\n<td>$400\u2013$800 (seller pays by convention)<\/td>\n<\/tr>\n<tr>\n<td><strong>Transfer Tax<\/strong><\/td>\n<td>$0.37\/$100 (sometimes split buyer\/seller)<\/td>\n<\/tr>\n<tr>\n<td><strong>Recording Fees<\/strong><\/td>\n<td>$50\u2013$100<\/td>\n<\/tr>\n<tr>\n<td><strong>Prorated Taxes<\/strong><\/td>\n<td>Seller pays through closing date<\/td>\n<\/tr>\n<tr>\n<td><strong>Total Seller Costs<\/strong><\/td>\n<td>6\u20137.5% of sale price<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<p>For exit analysis including selling costs and capital gains tax (0% state!), use the <a href=\"\/capital-gains-tax-calculator\">capital gains tax calculator<\/a>. Tennessee&#8217;s zero income tax means your net proceeds are 3\u20135% higher than selling in Ohio, Indiana, or Georgia.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Reduce_Tennessee_Closing_Costs\"><\/span>How to Reduce Tennessee Closing Costs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"1_Negotiate_Transfer_Tax\"><\/span>1. Negotiate Transfer Tax<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>While buyer typically pays the transfer tax in Tennessee, it is negotiable. In a buyer&#8217;s market (inventory 4.6 months nationally in 2026), sellers may agree to split or pay the full $0.37\/$100. On a $200K property: $370 savings if seller pays half.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Ask_for_Seller_Credits\"><\/span>2. Ask for Seller Credits<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Request 2\u20133% seller credit toward closing costs. On $155K: $3,100\u2013$4,650 \u2014 more than covering all closing costs. Seller credits are increasingly common with rising inventory. Per <a href=\"https:\/\/www.nar.realtor\/research-and-statistics\" target=\"_blank\" rel=\"noopener noreferrer\">NAR<\/a>, 26% of sellers offered concessions in Q2 2026.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Close_Late_in_the_Month\"><\/span>3. Close Late in the Month<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Prepaid interest runs from closing to month-end. Closing on the 28th = 3 days (~$95 on a $116K loan at 7%). Closing on the 1st = 30 days (~$950). $855 difference in cash needed at closing.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Shop_Lender_Fees\"><\/span>4. Shop Lender Fees<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Get 3+ Loan Estimates within 14 days. Origination fees range from 0% to 1.0% ($0\u2013$1,163 on a $116K loan). Some lenders offer no-origination with higher rate \u2014 compare APR.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"5_Tennessee_Closing_Cost_Mistakes\"><\/span>5 Tennessee Closing Cost Mistakes<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"1_Forgetting_the_Transfer_Tax\"><\/span>1. Forgetting the Transfer Tax<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Tennessee is not a zero-transfer-tax state like Indiana or Texas. $0.37\/$100 adds $574 on a $155K property and $1,406 on $380K. Budget for it.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Assuming_Owners_Title_Is_Your_Cost\"><\/span>2. Assuming Owner&#8217;s Title Is Your Cost<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In Tennessee, the seller typically pays the owner&#8217;s title policy ($400\u2013$800). The buyer pays only the lender&#8217;s policy ($300\u2013$500). Do not double-count both.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Ignoring_Memphis_Flood_Insurance\"><\/span>3. Ignoring Memphis Flood Insurance<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Memphis properties near the Mississippi River or Wolf River may require FEMA flood insurance ($500\u2013$2,000\/year) on top of standard hazard insurance. This is escrowed at closing \u2014 adding $125\u2013$500 to your cash required. Check the FEMA flood map before underwriting.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Using_Nashville_Closing_Costs_for_Memphis_Deals\"><\/span>4. Using Nashville Closing Costs for Memphis Deals<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Fixed costs are similar, but escrow reserves differ because property tax rates vary by county. Shelby County (Memphis) at 0.71% requires higher escrow than Davidson County (Nashville) at 0.52%. A $200K property: $60 more in 3-month escrow for Memphis vs Nashville.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_Not_Comparing_Title_Companies\"><\/span>5. Not Comparing Title Companies<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Tennessee title insurance rates are not as strictly regulated as Indiana. Rates vary 10\u201320% between companies. Shop 2\u20133 title companies for the best combination of rate and service.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span>Frequently Asked Questions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div itemscope itemtype=\"https:\/\/schema.org\/FAQPage\">\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Does_Tennessee_have_a_transfer_tax\"><\/span>Does Tennessee have a transfer tax?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:block\">\n<p itemprop=\"text\">Yes \u2014 Tennessee charges a state transfer tax of $0.37 per $100 of the sale price. On a $200,000 property: $740. This is typically paid by the buyer but is negotiable in the purchase contract. Tennessee&#8217;s transfer tax is lower than Florida ($1,400 on $200K) and Pennsylvania ($4,000) but higher than Indiana ($0) and Texas ($0). Use the <a href=\"\/states\/tennessee\/closing-costs-calculator\">Tennessee closing costs calculator<\/a> for exact amounts.<\/p>\n<\/div>\n<\/div>\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\"><span class=\"ez-toc-section\" id=\"How_much_are_closing_costs_in_Tennessee\"><\/span>How much are closing costs in Tennessee?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none\">\n<p itemprop=\"text\">Buyer closing costs in Tennessee average 2\u20134% of purchase price. On a $155K Memphis SFR: approximately $2,915 in closing costs plus $3,753 in prepaids and escrow. Total cash at closing with 25% down: ~$45,418. Nashville ($380K) requires ~$104,420 total. Cash purchases are lower \u2014 no lender fees or escrow.<\/p>\n<\/div>\n<\/div>\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Do_I_need_an_attorney_to_close_in_Tennessee\"><\/span>Do I need an attorney to close in Tennessee?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none\">\n<p itemprop=\"text\">No. Tennessee is a title-company state. Closings are handled by title companies or escrow agents, not attorneys. This saves $500\u2013$1,500 compared to attorney-required states. You may hire an attorney for contract review, but it is not required for closing.<\/p>\n<\/div>\n<\/div>\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Who_pays_title_insurance_in_Tennessee\"><\/span>Who pays title insurance in Tennessee?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none\">\n<p itemprop=\"text\">By Tennessee convention, the seller pays the owner&#8217;s title insurance policy ($400\u2013$800) and the buyer pays the lender&#8217;s title insurance policy ($300\u2013$500). This is negotiable in the purchase contract. Unlike Indiana, Tennessee title insurance rates are not strictly regulated \u2014 shop 2\u20133 companies for the best rate.<\/p>\n<\/div>\n<\/div>\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Are_Tennessee_closing_costs_higher_than_Indiana\"><\/span>Are Tennessee closing costs higher than Indiana?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none\">\n<p itemprop=\"text\">Slightly \u2014 because of the transfer tax. On a $185K property: Tennessee closing costs ~$3,200 (including $685 transfer tax). Indiana closing costs ~$2,748 (zero transfer tax). The $452 difference is offset by Tennessee&#8217;s 0% income tax vs Indiana&#8217;s 3.05% + county tax. Over a 5-year hold, Tennessee&#8217;s tax savings ($1,500+) far exceed the one-time $452 closing cost difference.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"Related_Calculators_and_Guides\"><\/span>Related Calculators and Guides<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><a href=\"\/states\/tennessee\/closing-costs-calculator\"><strong>Tennessee Closing Costs Calculator<\/strong><\/a> \u2014 Estimate buyer costs<\/li>\n<li><a href=\"\/states\/tennessee\/rental-property-calculator\"><strong>Tennessee Rental Property Calculator<\/strong><\/a> \u2014 Include closing costs in analysis<\/li>\n<li><a href=\"\/states\/tennessee\/cap-rate-calculator\"><strong>Tennessee Cap Rate Calculator<\/strong><\/a> \u2014 Property return analysis<\/li>\n<li><a href=\"\/states\/tennessee\/dscr-calculator\"><strong>Tennessee DSCR Calculator<\/strong><\/a> \u2014 Loan qualification<\/li>\n<li><a href=\"\/states\/tennessee\/brrrr-calculator\"><strong>Tennessee BRRRR Calculator<\/strong><\/a> \u2014 BRRRR with closing costs<\/li>\n<li><a href=\"\/states\/tennessee\/\"><strong>All Tennessee Calculators<\/strong><\/a><\/li>\n<li><a href=\"\/closing-costs-calculator\"><strong>General Closing Costs Calculator<\/strong><\/a><\/li>\n<\/ul>\n<p>Other state closing cost guides:<\/p>\n<ul>\n<li><a href=\"\/blog\/indiana-closing-costs-investment-property\/\">Indiana Closing Costs<\/a><\/li>\n<li><a href=\"\/blog\/ohio-closing-costs-investment-property\/\">Ohio Closing Costs<\/a><\/li>\n<li><a href=\"\/blog\/georgia-closing-costs-investment-property\/\">Georgia Closing Costs<\/a><\/li>\n<li><a href=\"\/blog\/north-carolina-closing-costs-investment-property\/\">North Carolina Closing Costs<\/a><\/li>\n<li><a href=\"\/blog\/texas-closing-costs-investment-property\/\">Texas Closing Costs<\/a><\/li>\n<li><a href=\"\/blog\/florida-closing-costs-investment-property\/\">Florida Closing Costs<\/a><\/li>\n<li><a href=\"\/blog\/tennessee-rental-property-investment\/\">Tennessee Rental Property Guide<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Tennessee closing costs for investment property average 2\u20134% of the purchase price \u2014 moderate nationally, but with one unique factor: the state charges a transfer tax of $0.37 per $100&#8230;<\/p>\n","protected":false},"author":1,"featured_media":1073,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[],"class_list":["post-1072","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-investing"],"_links":{"self":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts\/1072","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/comments?post=1072"}],"version-history":[{"count":1,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts\/1072\/revisions"}],"predecessor-version":[{"id":1074,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts\/1072\/revisions\/1074"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/media\/1073"}],"wp:attachment":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/media?parent=1072"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/categories?post=1072"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/tags?post=1072"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}